A lot of people have been saying how the blockchain is much bigger than Bitcoin itself, and they are right for the most part. Even though the Bitcoin protocol is powered by blockchain technology, the capabilities of distributed ledgers are not just linked to the digital currency ecosystem. A recent report by Citi seems to be thinking along those same lines, although most of their use cases are still focused on the financial aspect. This disruptive technology can change a lot of things as we know them today, that much is certain.
Also read: Email Service Provider Fastmail Accepts Bitcoin Payments Some Institutions Gain from Blockchain Technology
Whenever a disruptive concept comes along, there are winners and losers. But things aren’t so black-and-white with blockchain technology in the picture, although there will be some fundamental changes along the way. Distributed ledgers offer far more advantages than downsides, but that does not mean there will be no casualties along the way.
Assuming this technology would be fully embraced by banks and financial institutions – through consortiums such as R3 CEV , most likely – the infrastructure being used today will undergo some necessary changes. With fewer – or no – intermediaries required, and real-time transaction processing capabilities, the entire infrastructure cost will be reduced, as there is far less overhead.
The Citi report mentions: “Blockchain technology could be applied more broadly than crypto-currencies. In the currency space, the Bitcoin rail could be used to facilitate cross-border payments or supply chain and trade finance. Because virtually any type of information can be digitized and placed onto Blockchain, theoretically any information of value could be transferred in the Blockchain world. The programmability of Blockchain makes it suitable for smart contracts: a contract that executes once pre-agreed conditions are met.” But at […]
